The facade of the Lee Plaza Building, on West Grand Blvd. has Ornate details, in Detroit. Friday, April 29, 2016.(Photo: Jessica J. Trevino, Detroit Free Press)

The transaction would transfer the Lee Plaza and Woodland Apartment buildings to the Detroit Building Authority and the 127 properties to the Detroit Land Bank Authority. Most of the homes are in neighborhoods, including Fitzgerald, the University District, Bagley and Grandmont-Rosedale, according to Housing and Revitalization Director Arthur Jemison.

City officials said many of the vacant single-family homes can't be sold under Detroit Housing Commission guidelines, but under the deal, they would be added to the Land Bank’s auction website or demolished.

The plan is expected to go before City Council this week, Jemison said, and be referred to the council's economic planning committee. Jemison said the city expects one to two weeks of hearings on the project.

Jemison also said the city will execute the transaction using money that was identified in old accounts dating back to the 1970s.

"This year, as part of the reforms introduced by the office of the chief financial officer, we've been closing out old, out-of-date checking accounts, and we identified resources in those old accounts that were eligible for use in this process," Jemison said.

Officials said the proposal would create more housing and rental assistance for Detroiters who make between 30% and 50% of the area median income.

City officials promoted the deal to offload vacant units as a way to put the Detroit Housing Commission on stronger footing by next year.

"We're putting our partner hopefully on a path to become a high performer," Jemison said. "We'll also have the ability to effect change in the neighborhoods, not just this neighborhood near LaSalle Gardens or Woodland Apartments on Woodland Street, but also the other 127 houses around the city."

The city plans to market the Lee Plaza and Woodland Apartments for redevelopment. Twenty percent of the units in the multi-family buildings will require affordable housing. According to the city, "multiple developers" have expressed interest in both buildings, and marketing is expected to begin in July.

The tower opened in 1929 as a luxury residential hotel and closed in the 1990s as low-income senior housing. It is located in a part of Detroit that has seen minimal redevelopment activity. The plaza is about a mile west of the New Center area.

Richard Hosey, Detroit Housing Commission president, told the Free Press on Monday that Sasser's plans to redevelop the property fell through due to a lack of financing.